tax on second job first job 27k second job 16k?

Question

What tax will i pay on second job im self employed and earn 27k a year but wait mths on getting paid have bought a new house so took a day job to pay morgtage,never been on paye before i pay my own self employed ni

thanks but im in the uk you have said $ but very enteresting indeed

im also married with two childern and another one six weeks away

Answer 1

First job............27,000
Free Pay............5,225
Taxable............21,775
1st 2,230........taxable @ 10%
next 19,545........taxable @22% (basic rate)
Total tax due on self employed income = £4,523 (223+4300)
This excludes Class 4 NIC's (payable at same time as your tax) amounting to £1,742 (21775 @ 8%)

Second job........16,000
All taxable
1st 12,825 (34,600 less 21,775) @ 22% = 2,821.50
Balance (16,000 less 12,825) = 3,175 @ 40% = 1,270.00
Total tax on 2nd job....................4,091.50

You already pay a self employed stamp but you will also have to pay National Insurance Contributions on your second job.
That will cost you 11% of earnings over £100 per week
ie 16,000 per year = 307 per week = NIC on 207@11% = 22.77 per week or 1,184 per year
Therefore your total deductions per year are:
Tax 4,091
NIC's 1,184
Total 5,275

Take home pay = 16,000 less 5,275 = 10,725
or 206.25 per week

This is how much better off your family will be after all taxes etc are taken into account.

"Paul S's" answer is almost correct.........other than the fact that his total tax is wrong..............add the 3 figures and it comes to more than what Paul has stated........but his correct total agrees with mine.

"Paul S's" answer is probably factually correct but he doesn't tell you how much extra tax you will have to pay on your self employed income if you get your tax free allowance allowed against your PAYE income.

My answer tells you how much better off you will be per week after all taxes etc .........although you might actually receive more home with you each week from your PAYE job than I have stated.............you should set the extra aside to pay your increased Schedule D tax bill on your self emloyed earnings.

I hope you understand this............and good luck with your jobs.

Answer 2

On the two jobs together, if you are married you are likely in a 15% bracket, if you're single you're probably in a 25% bracket - you don't give enough info to know for sure.

On the $27K job where you are self-employed, you'll owe around $3800 for self-employment tax (social security and medicare). On the other job, if you are an employee, you'll just pay 7.65%, or $1224, for ss and medicare - the employer will pay a matching amount on your behalf.

Your income taxes are harder to figure, since you don't give enough info. If you are single and take a standard deductiion, and don't have any dependents or other adjustments, your federal income tax on the two jobs total would be around $5126 - of you are married and your spouse doesn't have income also, your federal income tax would be a little over $3000. If you have children, and/or if you itemize your deductions, those numbers could decrease, maybe substantially.

Depending on where you live, you might also owe state and/or local taxes.

Answer 3

Brianfromnorthenireland was close but your second job being employed will become you first job and self employment second.

you will pay tax on your employment of £16k. you will have a tax code of 522L which mean £5225 of the £16k will be tax free. will work like this

gross pay £16000
tax free £ -5225
taxed on £ 10775

2230 taxed @ 10% = 223
8545 taxed @ 22% = 1879.99
---------
10775

total tax payable is 2102.99


your self employment if different, you say you earn £27k, is this gross or net profit? if net profit then £23825 will be taked at 22% and the remaining £3175 will be taxed at 40%

therefore total tax will be

total employed PAYE tax 2102.99
23825 taxed @ 22% 5241.50
3175 taxed @ 40% 1270.00

Total tax due 7343.79

also will have to deduct National Insurance from your employment but if you want more help, go to

http://www.ir35calc.co.uk/PAYE_NI_Net_Salary_Tax_Calculator.aspx

this will calc tax and ni deductions for you.

Answer 4

your second job will actually be your self employment. You will get all your allowances on the smaller income and have to pay
full tax on the self employment. I would go to your tax office and find out how much to set aside for tax based on your current income. They will offer to take it monthly. Don't accept this "generous" offer, put it in an interest bearing account, or a offset mortgage. Be careful not to increase your mortgage, that can be tempting.

Answer 5

You'll get a zero code under PAYE and pay tax at your marginal rate. This means that your Schedule E tax will be at 40%. (Plus Class 1 NIC up to the maximum)

Answer 6

what is it that you do?
coz if you can earn 27 grand a year, plus getting another full time job worth 16 grand then you must be a very clever bloke.